Discussions around the Gender Pay Gap and how to redress the balance have been in the forefront since the government issued a consultation report in the summer with detailed plans on reporting in the public sector. It is expected that separate regulations will come into force by the end of 2016 that will require private sector employers to publish pay levels by April 2018.
Just how big is the pay gap? A recent study by the London School of Economics and Political Science (LSE) has found that that just 9.2% of the top 0.1 salaries earned in the UK in 2013 were by women. The report found that while white female representation in the high income brackets had risen over the last 20 years, little had changed in the top 0.1%.
In another report, Deloittes have predicted that unless significant action is taken then the UK’s gender pay gap will not close until 2069. Their research has found that women in full time employment between the period of 2002 and 2015 earned almost 10% less per hour than men, with the disparity closing at an average rate of just 2.5p per year. They also found that in certain sectors, for example, skilled trades and education that the gap was widening.
The Managing Partner for Talent at Deloitte; Emma Codd has said that employers have a big role to play in the fight for gender pay parity and that even though progress has been made in the last 50 years, we should not have to wait another 53 years for full parity.
Kim says; “all businesses irrespective of their size or industry need to look at their pay structures and how they match the roles. An audit to benchmark against similar jobs within the business is a must in terms of the new requirements. Starting this process earlier will enable businesses to plan any budget changes in advance of the deadlines. Regardless of the legislation, surely it makes sense to ensure there is no gender inequality within the workplace. It would be wise to take this a step further and compare remuneration packages to similar roles in the market as even if an organisation can’t keep pace with their competitors, it’s useful to know what they’re up against. We shouldn’t be on the back foot when employees threaten to leave because more is on offer elsewhere. Forearmed is forewarned!”
For help and guidance relating to Gender pay gap, contact Kim or Kerry at HaytonHeyes on 01925 758702 or email Kerrym@haytonheyes.co.uk